Record-high volume and good results for the farming segment
SalMar harvested 35,400 tonnes of salmon in the third quarter 2012, 11 per cent more than in the same period last year, and an all-time high for the Group. The company made an operational EBIT of NOK 109 million in the quarter, compared with NOK 134 million in the same period in 2011.
The average price of salmon (NOS spot) was on a par with the third quarter last year. The decrease in operational EBIT is partly attributable to favourable fixed-price contracts boosting the result for third quarter last year. However, the fish farming segments SalMar Central Norway and SalMar Northern Norway can point to reduced costs and improved operating margins compared with the previous quarter. The Rauma segment's results were weakened by the fact that part of its harvested volume had been infected with PD.
The Sales and Processing segment achieved mixed results. While InnovaMar posted stable margins and a high volume of harvested fish, the sales business's profit margins were negatively affected by challenging market conditions.
"We have harvested a record-high volume during the quarter, and the global market growth has been as high as 19 per cent compared to the corresponding quarter in 2011. The overall volume growth in the industry is making the situation challenging for our sales business," says SalMar CEO Yngve Myhre. "Yet despite this we are posting good results for the quarter, and the improvement in underlying costs in SalMar Central Norway and SalMar Northern Norway shows that we are on the right track."
Sea temperatures at SalMar Central Norway's facilities have been lower this autumn than in the corresponding period last year. In light of this, and to safeguard a more optimal production and the supply of raw materials to our processing businesses, some of the volume due to be harvested this year are planned to be pushed back to 2013. The 2012 harvesting forecast for this segment has therefore been reduced from approx. 74,000 tonnes to 69,000 tonnes.
SalMar expects to harvest a total of 115,000 tonnes of fish in 2013, a rise of some 10 per cent from the expected volume in 2012 of 104,000 tonnes.
Please find enclosed the company's interim report and financial statements for the third quarter 2012.
For more information, please contact:
Yngve Myhre, CEO, tel: +47 916 30 174
Trond Tuvstein, IR, tel: +47 918 53 139
E-mail: ir@salmar.no
Web: www.salmar.no
About SalMar
SalMar is one of the world's largest and most efficient producers of farmed salmon. SalMar is vertically integrated along the entire value chain from broodfish, roe and smolt to processing and sales. The Group has fish farms in Trøndelag, Møre & Romsdal, Troms and Finnmark, as well as substantial harvesting and processing capacity at InnovaMar in Frøya and Vikenco in Aukra. In addition, SalMar owns 50% of Scottish Sea Farms Ltd and 25.2% of P/f Bakkafrost in the Faeroes.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
